Trump tariffs go into effect against Canada, Mexico; China retaliates
Kena Betancur/VIEWpress
(WASHINGTON) — President Donald Trump’s broad tariffs on imported goods from Mexico and Canada went into effect on Tuesday, along with increased duties on goods from China, a move that prompted a swift retaliation from Beijing.
“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement.
Goods entering the U.S. from Mexico and Canada will carry a 25% tariff, while those from China will be subject to a 10% increase on existing tariffs, according to the White House.
Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.
Those duties will be on top of similar tariffs imposed back during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.
The new Chinese tariffs are set to come into effect for goods shipped out next Monday, March 10.
Canadian Prime Minister Justin Trudeau also promised to impose tariffs on American goods if Trump’s tariffs on Canadian goods went into effect.
He said in a statement on Monday that Ottawa would start with “tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion on American products in 21 days’ time.”
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said in the statement.
Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.
The announcement sent major stock indexes plummeting, with the S&P suffered its biggest loss since December, closing at 5,849.72 — down 104.78 points or 1.76%. The Dow Jones Industrial Average closed at 43,191.24 down 649.67 points — or 1.48% — while the tech-heavy Nasdaq fell 2.64%.
Asian markets were mixed on Tuesday. The Shanghai Stock Exchange climbed less than a percentage point, while the Nikkei in Japan slipped about 1.2% and the Hang Seng in Hong Kong closed down about 0.3%.
European markets mostly traded off on Tuesday, with the DAX in Germany down about 1.6% and the FTSE 100 slipping about 0.3% midday.
The U.S. tariffs arrived about a month after Trump granted Mexico and Canada a reprieve, having reached agreements with the two countries regarding border security and drug trafficking.
(NEW YORK) — Two weeks before the Supreme Court is set to hear oral arguments over TikTok’s future, President-elect Donald Trump has asked the justices to delay a Jan. 19 deadline for the app to be sold to a new owner or face a ban in the U.S.
An amicus brief filed by Trump’s nominee to be solicitor general, John Sauer, is asking the court to grant a stay delaying the deadline so that the incoming president can work out a “negotiated resolution” that would save the app.
The filing casts Trump as someone who “alone possesses the consummate dealmaking expertise, the electoral mandate, and the political will to negotiate a resolution to save the platform while addressing the national security concerns expressed by the Government.”
Trump’s brief says he “opposes banning TikTok in the United States at this juncture,” but does not express the view that the law requiring the sale violates the First Amendment, saying he takes no position on the merits of the case.
Instead, the filing from Sauer asks the court to put the deadline on pause to allow Trump’s incoming administration “to pursue a negotiated resolution that could prevent a nationwide shutdown of TikTok, thus preserving the First Amendment rights of tens of millions of Americans, while also addressing the government’s national security concerns.”
TikTok, which has over 170 million U.S. users, has sued over the law requiring it to be sold by its current Chinese-based owner ByteDance by Jan. 19 or be banned in the U.S.
A federal appeals court earlier this month rejected the company’s request for an emergency pause in the deadline.
The Supreme Court is set to hear arguments in the case on Jan. 10.
President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act, which was part of a massive, $95 billion foreign aid package passed by Congress, on April 24.
Biden and some congressional leaders argued that the ultimatum against TikTok was necessary because of security concerns about ByteDance and its connections to the Chinese government.
Trump originally tried to ban TikTok in his first term, but has since reversed course, vowing during the 2024 presidential campaign to “save” the app.
In Trump’s amicus brief, Sauer raised the idea of social media censorship, invoking Brazil’s recent month-long ban of social media platform X, the treatment of the Hunter Biden laptop story and government efforts to stamp out COVID-19 misinformation as incidents that should give the justices pause.
“This Court should be deeply concerned about setting a precedent that could create a slippery slope toward global government censorship of social media speech,” Sauer wrote in the filing. “The power of a Western government to ban an entire social-media platform with more than 100 million users, at the very least, should be considered and exercised with the most extreme care—not reviewed on a ‘highly expedited basis.’”
While Sauer acknowledged that TikTok may pose national security risks while it remains under ByteDance’s control, he also urges the justices to be skeptical of national security officials, whom, he said, “have repeatedly procured social-media censorship of disfavored content and viewpoints through a combination of pressure, coercion, and deception.”
“There is a jarring parallel between the D.C. Circuit’s near-plenary deference to national security officials calling for social-media censorship, and the recent, well-documented history of federal officials’ extensive involvement in social-media censorship efforts directed at the speech of tens of millions Americans,” Sauer wrote.
(NEW YORK) — While some companies are steering away from diversity, equity, and inclusion (DEI) policies, others are sticking with their previous commitments.
Leaders at Goldman Sachs, Costco and JPMorgan Chase & Co have recently spoken out in support of their diversity programs, as anti-DEI activist shareholders continue to push proposals that would roll back company policies.
Costco’s Board of Directors unanimously voted Thursday against a proposal from the National Center for Public Policy Research that had called for Costco to evaluate and publish a report on any risks that may be associated with the company’s diversity and inclusion efforts, according to a Jan. 23 shareholders meeting statement.
“Our efforts around diversity, equity and inclusion follow our code of ethics,” the board statement on the proposal stated. “For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected. Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all. We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.”
The board argued that its diversity programs comply with the law, and defended its commitments to diversifying its supplier base — including special attention to small businesses. The board statement ultimately argued the proposal reflected a “policy bias.”
Costco representatives have not responded to ABC News’ request for comment.
Amid ongoing pressure over its DEI initiatives, a Goldman Sachs spokesperson told ABC News in a statement: “We strongly believe that organizations benefit from diverse perspectives, and Goldman Sachs is committed to operating our programs and policies in compliance with the law.”
Goldman Sachs representatives directed ABC News to a Jan. 22 interview with CNBC from CEO David Solomon, in which Solomon said that the financial services company is looking at these issues “through the eyes of our clients.”
He added, “They think about decarbonization, they think about climate transition,” he said. They think about their businesses, how they find talent, the diversity of the talent they find all over the world. You know we operate a big global business and we serve global clients everywhere. We think about these issues through the lens of, how do we help our clients navigate these things? And we continue to stay focused on talking to our clients and doing the things we’ve always done.”
The company has come under scrutiny for its stated commitments to racial equity, gender equality and increasing diversity. Strategies listed on its website include expanded recruitment efforts, pay gap data collection, aspirational hiring goals and career development programs.
JPMorgan Chase CEO Jamie Dimon, in an interview with CNBC, said he’s “very proud of what we’ve done.”
“We will continue to reach out to the Black community, the Hispanic community, the veterans community, LGBTQ, we have teams with second chance initiatives — where I go, with blue states, red states, governors, they like what we do,” said Dimon.
JPMorgan Chase did not respond to request for comment.
DEI initiatives, according to ABC News interviews with DEI experts, are intended to address and correct discriminatory policies or practices that may be found within an organization. Experts told ABC News that some examples of DEI initiatives include: implementing accessibility measures for people with disabilities, addressing gender pay inequity, mitigating bias in hiring and recruitment practices, and holding anti-discrimination trainings and more.
Several other companies across industries — including Amazon, Meta and McDonalds — have stepped back and ended their diversity and inclusion initiatives that were largely pledged after the police killing of George Floyd and subsequent protests against racial inequality.
The reversal comes amid ongoing anti-DEI action from conservative politicians, who have implemented policies restricting diversity and equity programs in government, colleges, universities, and more. After taking office this week, President Donald Trump signed an executive order dismantling DEI programs in the federal government.
In an interview with ABC News, Ethan Peck, deputy director for the National Center for Public Policy Research’s Free Enterprise Project, said that diversity programs pose risks to shareholder value, as they may invite lawsuits from those claiming to have been discriminated against based on recent arguments made against affirmative action.
Some legal experts disagree, arguing that repealing DEI policies could leave companies vulnerable to potential lawsuits from marginalized groups alleging discrimination.
Peck, whose group mounts campaigns to pressure companies to disband DEI programs, argued that diversity programs sacrifice “excellence and innovation,” but said he did not provide examples of employment discrimination at these companies.
“Eventually you will drop DEI, and it’s better for your shareholders if you do it sooner rather than later,” said Peck, who noted that Boeing and John Deere were faced with similar proposals and later dropped their diversity, equity and inclusion programs.
“I believe that this is a fad,” he said.
Anti-DEI activists also argue that “aspirational” goals for increasing diversity and representation are a guise for quotas, which are largely considered illegal, according to the Equal Employment Opportunity Commission.
“You can be fair in hiring and promotions with candidates of all backgrounds and perspectives without resorting to quota systems and considerations based on immutable characteristics,” said Paul Chesser, the director of the Corporate Integrity Project at the National Legal and Policy Center, in an emailed statement.
Christie Smith, former vice president of inclusion and diversity at Apple and C-Suite adviser, argued that DEI commitments instead increase shareholder value.
DEI has prompted “increased innovation, increased growth in these organizations, increased opportunities in startup organizations, which mostly women and people of color are at, starting these kinds of companies and growing our economy in that way,” she told ABC News.
(NEW YORK) — Shares of Boeing fell in early trading on Monday, one day after a Boeing model 737-800 was involved in the Jeju Air plane crash in South Korea that killed scores of passengers.
The stock price dropped more than 4% at the open of trading on Monday morning. The slide came hours after South Korea’s transportation ministry announced it would investigate the crash and conduct a full inspection of all Boeing 737-800 aircraft in use in South Korea.
All but two of the 181 people on board died Sunday in what authorities said was the deadliest plane crash in South Korea in decades.
The only survivors, a man and a woman, were among the six crew members onboard the Jeju Air Boeing 737-800 when it skidded along a runway, crashed into a wall and burst into flames on Sunday morning, officials said.
In a statement posted on X on Sunday, Boeing said the company had established communication with Jeju Air about the incident.
“We are in contact with Jeju Air regarding flight 2216 and stand ready to support them,” Boeing said. “We extend our deepest condolences to the families who lost loved ones, and our thoughts remain with the passengers and crew.”
Boeing did not immediately respond to ABC News’ request for comment.
Jeju Air said it would not suspend operations of its 737-800 aircraft.
“There are no plans to suspend operations, but they will examine those parts once more and check them thoroughly during the inspection process,” said Song Kyung-hoon, head of Jeju Air’s Management Support Division.
As the aircraft approached South Korea’s Muan International Airport at 8:54 a.m. local time, the control tower gave it permission to land on a south-to-north runway, according to an official timeline by the Korean Ministry of Land Infrastructure and Transport.
Three minutes later, the flight control tower issued a warning of a possible bird strike, the transport ministry said. About two minutes after that warning, a pilot sent a distress signal, saying, “Mayday, mayday, mayday, bird strike, bird strike, going around,” the ministry said.
An official cause of the crash is under investigation by South Korea’s Aviation and Railway Accident Investigation Board.
The fatal crash and ensuing stock slide mark the latest setback for Boeing, which sought to put a series of scandals behind it last month when it struck a deal with a union representing thousands of West Coast factory workers, who had undertaken a seven-week strike.
The labor action began days after Boeing’s troubled Starliner spacecraft returned to Earth without its crew due to mechanical issues, and months after a door plug blew out of the company’s 737 Max 9 aircraft mid-flight, which itself happened five years after Boeing’s 737 Max aircraft were first grounded worldwide following a pair of tragic crashes.
The losses for Boeing on Monday coincided with a broader decline in the stock market.
The Dow Jones Industrial Average fell nearly 700 points in early trading, dropping the index about 1.5%.
The S&P 500 slid 1.5% in early trading on Monday, while the tech-heavy Nasdaq also declined 1.5%.
ABC News’ Joohee Cho and Kevin Shalvey contributed to this report.
